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REQUEST FOR ACTION TO ITEM NUMBER Mavor and City Council 4.6. AGENDA SECTION MEETING DATE PREPARED BY Consent November 21, 2011 Troy Adams, P.E. — Utilities Director ITEM DESCRIPTION REVIEWED By Request for Approval of a Memorandum of Understanding REv1EWED BY Regarding Street Light Installation and Maintenance between Elk River Municipal Utilities and the City of Elk River, Minnesota ACTION REQUESTED Elk River Municipal Utilities requests City Council approval and execution of the proposed Memorandum of Understanding Regarding Street Light Installation and Maintenance between Elk River Municipal Utilities and the City of Elk River, Minnesota. This MOU was approved by the Utilities Commission on November 15, 2011. BAMROUND/DISCUSSION In 2007, Elk River Municipal Utilities and the City of Elk River established an agreement regarding costs associated with new and replacement street lights related to street rehabilitation and improvement projects. Although there are currently a few street lights within the City of Elk River that are not within Elk River Municipal Utilities' electric service territory, generally speaking the residents and businesses that pay through taxes for the replacement of street lights within the City of Elk River are also paying for electricity to Elk River Municipal Utilities. With this observation in mind, to provide the most efficient services to the residents, businesses, and electric customers, this goes beyond the philosophical question of whether a service should be funded through taxes or rates. It also should be noted that Elk River Municipal Utilities' electrical service territory extends beyond the corporate limits of the City of Elk River into Big Lake Township, Dayton, and Otsego. In recent years it has been noted that there are many light fixtures within the City of Elk River that are in serious disrepair and require painting or replacement. Unfortunately, these fixtures often go unaddressed until the fixtures are beyond repair. It is more expensive to replace fixtures than to repaint or repair fixtures. Therefore, it would be in the residents', businesses', and customer's best interests for these street lights to be maintained in a timely manner in an effort to be efficient and cost effective with the limited resources available. City staff is more than capable to forecast the costs and implement a maintenance/replacement plan for street lights. However, there is some efficiency to be gained by having the entity currently responsible for general maintenance to also be responsible for installation of new and long-term replacement planning of existing street lights. Elk River Municipal Utilities is equipped with the bucket and digger/derrick trucks required to do maintenance on street lights. Elk River Municipal Utilities also is licensed as an electrical contractor and would be able to legally perform electrical maintenance to street lights under the National N:\Public Bodics\City Council\Council RCA\Agenda Packet\11-21-2011\2011-11-21 - ERMU - City Counci Action Requested Memo - Street Lioting MOU.docx WK